Question

Burchette, Inc.’s comparative balance sheet at January 31, 2015, and 2014, reports the following (in millions):

RequirementsTree situations about Burchette’s issuance of stock and declaration and payment of dividends during the year ended January 31, 2015, follow. For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Burchette’s net income or net loss during the year ended January 31, 2015.1. Burchette issued $6 million of stock and declared no dividends.2. Burchette issued no stock but declared dividends of $5 million.3. Burchette issued $31 million of stock and declared dividends of $3million.